An independent analysis
of the 2012
State of the Nation Address
relating to tourism
Presented by Dr Reedwaan Ismail
Head of Department: Strategic Projects & Initiatives - CPUT
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Overview of SoNA 2012 - Tourism
In 2009 the National Planning Commission produced a National Development
Plan for South Africa which addresses the elimination of poverty and
inequalities.
The President’s call in his address was for job creation in order to eradicate
poverty.
We should not forget that 2011 was declared the year for job creation.
Since the job fund began operating in June 2011, an amount of one billion rand
has been committed for job creation.
As part of its oversight exercise, the portfolio committee could request the NDT
to conduct a survey to produce statistics on the number of jobs that were
created since 2011 with respect to the Tourism Industry as well as determining
the number of tourism related businesses which have applied and received
funding.
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Overview of SoNA 2012 - Tourism
The President mentioned that under section 12(i) of the Income Tax Act, R 20 Billion of
incentives was made available to support new manufacturing projects. Furthermore, it
was mentioned that seven projects with an investment value of 8,4 billion rand was
approved. Indeed, here exists another opportunity for communities to apply for
funding to manufacture clothing, memorabilia, arts and crafts, footwear and leather
items for tourists consumption.
The tourism sector should not forego this opportunity to apply for funding and utilize it
for job creation.
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Overview of SoNA 2012 - Tourism
In 2010 the New Growth Path Framework identified tourism amongst others as job drivers.
The Green Economy Accord that the President referred to in his speech should be adopted
by tourism stakeholders in an effort to commit business to develop benchmarks to support
the idea of creating jobs.
The Minister for Economic Development, Mr Ebrahim Patel stated that “ the green
economy can create a large number of jobs…. and help to create a sustainable future for
this and the next generation”.
Higher Education Minister Blade Nzimande said his department was pulling SA's universities
and its Sector Education and Training Authorities (Setas) together to ensure that their
projects supported the green economy by, among other things, growing the number of
artisans in the country.
The tourism industry should come on board and develop a framework policy on how it
envisages to give effect to the objectives of the Green Economy Accord .
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Overview of SoNA 2012 - Tourism
The President confirmed in his speech that dialogue between business , labor and the
community sector indicate that the unemployment rate came down from 25% to 23.9% is
attributed to a number of new jobs that were created.
Already 10 billion rand has been set aside by the Industrial Development Corporation for
job creation.
The NDT should encourage tourism businesses to apply for such funding with the aim of
creating more jobs.
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Overview of SoNA 2012 - Tourism
President Zuma mentions education in ten different places in his 2012 SONA speech.
From the statistics mentioned by President Zuma, the grade R enrolment increased from
300 000 in 2003 to 705 000 in 2011.
I therefore propose that not only do we invest in producing more teachers who can
teach mathematics , science and African languages, but that we also promote tourism
education at schools. Every student after matriculating should have an appreciation of
tourism and understand how it contributes to the GDP of the country as well as the
potential it has to create jobs.
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Overview of SoNA 2012 - Tourism
President Zuma states in his speech that “with regards to HE we are exceeding targets”.
According to the President 14 000 learners were placed in workplace learning
opportunities over the past year.
The Tourism & Events Department at the Cape Peninsula University of Technology has a
100 % success rate of placing students undertaking their in-service training in the
tourism & events industry.
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Overview of SoNA 2012 - Tourism
I made reference in my presentation in 2011 that the Tourism Department ought to host
a tourism conference.
I want to commend the Portfolio Committee on Tourism for hosting a summit on
28 February 2011 where a number of our tourism students from CPUT were invited to
attend.
In this regard the FoB at CPUT will be hosting a seminar on the state of tourism research
in the country and at HE Institutions. We will be extending amongst other invitations to
the Minister of Tourism and the Chairperson of the Portfolio Committee to address us at
this important event.
The Tourism Seminar will take place on Thursday 24 May 2012 at the Hotel School in
Granger Bay.
We intend signing the Memorandum of Understanding with the NDT and CPUT at this
event.
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Overview of SoNA 2012 - Tourism
President Zuma in his 2012 SONA address announced that a number of heritage projects
will be initiated to promote social cohesion.
In my overview of SONA in 2011, I mentioned that a National Heritage Route –
celebrating icons who contributed to the liberation struggle and also Cultural Tourism
should be promoted on the Cape Flats.
I propose, for example, the construction of a museum as a heritage project on the Cape
Flats where the heritage of its people is showcased so that tourists undertaking the
cultural tour of the Cape Flats can experience this unique offering.
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Overview of SoNA 2012 - Tourism
In my overview of SONA in 2011, I mentioned that more resources should be directed
to small businesses by merging:
• Khula
• SA Micro Finance Apex Fund
• Industrial Development Corporation IDC’s small business funding
It is pleasing to note that the President in his 2012 SONA address mentioned that
“progress has also been made in amalgamating small business institutions, and a new
entity will be launched in 2012”.
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Overview of SoNA 2012 - Tourism
In my overview of SONA 2011, I mentioned that tourism infrastructure on the Cape
Flats should be developed & Cultural Tourism should be promoted.
In this regard the final draft of the National Heritage and Cultural Tourism Strategy
serves to guide and provide strategic direction to the development and promotion of
heritage and cultural tourism in South Africa.
I am pleased to note that the President in his 2012 SONA address invited all of us to join
government in a massive infrastructure drive. This initiative must be welcomed and I
believe tourism can benefit from this massive infrastructure development.
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Overview of SoNA 2012 - Tourism
In my overview of SONA 2011, I mentioned that cruise tourism should be promoted.
The Market Demand Strategy of Transnet as mentioned by President Zuma will be
investing 300 billion rand in capital projects. At least 100 billion rand will be earmarked
for projects in the ports.
As an example, on 24 January 2012, the Queen Mary II berthed at Duncan Dock with
2 000 visitors on board for a period of three days.
The opportunity exists for passenger cruise liners to dock at Cape Town Harbor as soon
as the necessary infrastructure have been developed.
Passenger cruise liners have the potential to create a number of jobs for tourist guides,
emerging tour operators as well as benefit the tourism value chain.
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Overview of SoNA 2012 - Tourism
In my deliberation in 2011, I stated that the Tourism Portfolio Committee should lobby
structures such as the African Union – AU, New Partnership for Africa’s Development –
NEPAD, Pan African Parliament – PAP and the Southern African Development
Community – SADC to market SA on the African continent.
I am pleased to state that President Zuma in his 2012 SONA speech mentioned “The
Presidential Infrastructure Championing Initiative”, that is the North – South Road and
Rail corridor which can be used by Tourism marketers to promote Africa as a destination
rather than only South Africa. This will create a sense of value in the mind of the tourist.
This initiative will afford tourists a larger variety of tour itineraries to select from.
Furthermore, the President alluded to the enormous potential along the West Coast of
the country and the need to improve infrastructure to unlock this potential.
Research should be undertaken to investigate the tourism potential available after the
improvement of the infrastructure of the West Coast.
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Overview of SoNA 2012 - Tourism
In my assessment of SoNA 2011, I stated that “Tourism is to be boosted by improving
tourism infrastructure and hosting more international sporting events”.
Well the President informed us that we will be hosting the Africa Cup of Nations in 2013.
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Overview of SoNA 2012 - Tourism
In summary…
• The Tourism Industry has the potential to create jobs and funding is available to
support it.
• The Green Economy Accord can create a large number of jobs.
• Tourism Education is a key stimulus to job creation.
• Tourism research should be promoted.
• Heritage & Cultural tourism to be promoted.
• Cruise tourism has the potential to create jobs.
• Promoting Africa as a tourism destination will create more opportunities.
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2012 SoNA – Impact on Tourism Portfolio Committee
• Continue with oversight visits to tourism initiatives and projects to monitor progress and compliance
with strategic and annual plans of DoT.
• Monitor Government’s adherence to the call for job creation through meaningful economic
transformation & inclusive growth.
• Job creation should enhance youth development. DoT and National Youth Development Agency &
Private sector should facilitate youth development in Tourism programmes & promote youth tourism
enterprises.
• The DoT, private sector and tourism stakeholders should develop strategies for sustainable tourism
development specifically in respect of small businesses.
• The portfolio committee should create space for public discussions on a range of topics, including:
sustainable tourism development, public private partnerships, creating business opportunities for
small businesses, creating public awareness and appreciation of the tourism sector, making the
tourism sector attractive for visitors and locals, environmental and socio-cultural impact of tourism.
• Evaluate DoT policies and programmes on sustainable tourism development and poverty alleviation.
• Commission research to investigate whether a regulatory framework within which a code of ethics can
be developed for the tourism sector.
• Explore ways in which rural areas, townships and the Cape Flats can be made more attractive and
accessible for the international visitor.
•The economic advantages of tourism as a major source of income and employment leads to its active
promotion by governments all over the world, often at the expense of the environment. Thus, the
portfolio committee could identify best practices in sustainable tourism development in developing
countries.
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Conclusion
I would like to remind all of us of the appeal made by the President in his concluding
remarks.
“I would like to appeal to all our people to join hands as they always do, as we deal
decisively with the triple challenges of unemployment, poverty and inequality.
Nobody will do this for us, it is in our hands. And we are all equal to the task”
Thank you
14 February 2012
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